A recent Court of Cassation judgment has clarified that UAE Labour Courts retain jurisdiction over employment disputes even where no official work permit exists. This decision offers important guidance for businesses operating outside formal registration or employing individuals without valid permits.
In this case, the employee’s claim had initially been dismissed by the Court of Appeal due to the absence of a work permit. However, the Court of Cassation quashed that ruling, confirming that Labour Courts have authority to hear disputes where an employment relationship can be proven—even informally.
What Employers Need to Know:
- Labour Court jurisdiction applies regardless of permit status. Courts will consider claims from employees with or without Ministry-registered contracts.
- Evidence can be informal. Termination emails, salary slips, WhatsApp messages, and payment vouchers may be sufficient to prove employment.
- Labour Law won’t apply if no permit exists. In such cases, Civil Law governs the dispute, and the claimant must pay civil court fees.
- The employer was ordered to cover legal costs.
This ruling highlights the importance of formalising all working arrangements and maintaining proper documentation. Informal employment relationships can still give rise to enforceable claims, even without a valid work permit.
Relevant Laws:
Federal Decree-Law No. (4) of 2016 on Medical Liability
Get in Touch:
For strategic guidance on employment structuring and HR compliance, please contact Vida Grace Serrano at vida@alsuwaidi.ae or Suneer Kumar at suneer@alsuwaidi.ae.
For support with employment disputes or litigation, please contact Wael Deyab at wael.deyab@alsuwaidi.ae or Mohammed Elmasry at mohamed.elmasry@alsuwaidi.ae at Alsuwaidi & Company.